Schneider Logistics settles class action lawsuit for $21 million

A major player in the logistics industry, Schneider Logistics serves as a subcontractor for Walmart. Schneider has agreed to pay $21 million to settle a class action lawsuit filed on behalf of warehouse workers at three distribution centers in California.

Theresa M. Traber of the law firm, Traber & Voorhees, told Land Line on Thursday, May 15, that this is a major victory for the 1,800 workers who worked at Schneider’s distribution centers in California, loading and unloading goods solely for Walmart.

Traber said she isn’t sure exactly how much Walmart will pay as part of the settlement since the terms of their settlement have not been made public.

“Since we are settling a federal lawsuit against massive international companies like Walmart and Schneider, we think the impact of the settlement will be felt across the country,” she said.

Workers filed the lawsuit in October 2011, alleging they were forced to work as many as 16 hours per day, sometimes working seven days per week, and didn’t get their mandatory rest breaks. They also claimed they were not paid overtime and were paid less than minimum wage for hours they worked. The class action lawsuit includes those who worked at the distribution centers from 2001 to 2013.

Traber said the court must still approve the terms of the written settlement, which may be decided by the end of 2014.

“The logistics industry is dominated by retail giants like Walmart and huge logistics companies like Schneider, who try to evade compliance with federal and state labor laws by using middlemen to hire workers to labor in warehouses and throughout the logistics chain,” Traber said.

“This settlement sends a message to all of these companies that they have to change their practices and make sure that all workers are paid fairly and treated in compliance with the law, regardless of what firm directly employs them.”